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Qualified Affordable Housing Projects and Other Tax Credit Investments
 3 Months Ended
Mar. 31, 2024
Investments in Affordable Housing Projects [Abstract]  
Qualified Affordable Housing Projects and Other Tax Credit Investments QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS
Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2024, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.
The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:
(dollars in thousands) March 31, 2024December 31, 2023
InvestmentAccounting MethodInvestment
Unfunded
Commitment (1)
InvestmentUnfunded
Commitment
LIHTCProportional amortization$119,914 $67,310 $114,991 $75,981 
FHTC
Proportional amortization (2)
32,757 27,148 34,220 27,421 
NMTCConsolidation51,421 — 47,727 — 
Renewable EnergyEquity15 — 201 — 
Total $204,107 $94,458 $197,139 $103,402 
(1)All commitments will be paid by Old National by December 31, 2027.
(2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024.
The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:
(dollars in thousands)
Amortization
Expense (1)
Tax Expense
(Benefit)
Recognized (2)
Three Months Ended March 31, 2024
LIHTC$2,486 $(3,331)
FHTC534 (663)
NMTC2,546 (3,175)
Renewable Energy186 — 
Total$5,752 $(7,169)
Three Months Ended March 31, 2023
LIHTC$1,463 $(1,908)
FHTC424 (512)
NMTC2,091 (2,611)
Renewable Energy246 — 
Total$4,224 $(5,031)
(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense.
(2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).